Answer:
First option is correct.
Explanation:
The company is potentially an appropriate addition to the investor's portfolio due to high PVGO ratio as the investor believes that company can earn better return by investing profit into future growth opportunities.
Answer:
The correct answer is A. expanding open market purchases and the money supply even when short-term interest rates are zero, C. purchase of assets other than government bonds, D. providing 'forward guidance' about future short-term interest rates to influence expectations of future long-term interest rates.
Explanation:
An unconventional monetary policy is one that uses unusual mechanisms to reactivate the economy and maintain economic-financial stability.
Unconventional or non-standard monetary policy are those unusual mechanisms. They are often used in times of deep crisis, when conventional monetary policy is not enough. Initially, the central bank modifies basic parameters such as interest rates. If this has no effect on the economy, then turn to more aggressive policies.
Beyond the objectives of monetary policy in general, unconventional monetary policy pursues its own. Its objectives are:
- Provide or drain liquidity with more powerful mechanisms.
- Maintain the proper functioning of the financial markets.
It is also important that among the unconventional measures, there are modified conventional measures. For example, as an unconventional measure, the central bank can modify the maturities of a conventional monetary policy instrument.
Answer:
$15,000
Explanation:
Realized gain is the profit that is exceeded from the expense for a particular years. Realized loss is the loss that resulted from the excessive expense.
To determine the net realizable gain or loss, we can use the following formula -
Realizable Gain (loss) = Sale amount of tangible assets + mortgage purchasing - purchase price
Given,
Sale amount of tangible assets = $30,000
purchase price = $85,000
mortgage purchasing = $70,000
Putting the value into the formula, we can get-
Realizable Gain (loss) = $30,000 - $70,000 - $85,000
Therefore, Realizable Gain (loss) = $15,000
Answer:
Which of the following is the main force behind the decisions made by
producers in a free-market society?
The profit motive
Explanation:
This best explains the reason behind monopoly, such producer decides everything in the market which makes the customers without any option than to buy. This makes the main objective in free-market society to be the profit motive.
Answer:
B. cyclical unemployment rate is 4%
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed.
Basically, unemployment rate is divided into various types and these include; cyclical unemployment rate (CU), frictional unemployment rate (FU), structural unemployment rate (SU), Actual unemployment rate (AU) and Natural Rate of Unemployment (NU).
In this scenario, the actual unemployment rate in the economy is 9%. If the natural rate of unemployment is 5%, then we are certain that the cyclical unemployment rate is 4%.
Substituting into the equation, we have;
Cyclical unemployment rate = 4%
